Loyalty as a matter of principle: the influence of standards of judgment on customer loyalty

Ethicists refer to people who make judgments based on normative principles as deontologists. Their ethical standards are such that loyalty is an important characteristic to them—which could make them appealing consumers for marketers to target. In a series of three studies, we illustrate the following: whether deontological standards of judgment positively impact their consumer loyalty, if normative advertising campaigns are more effective for deontologists than for utilitarians, and whether the loyalty proneness of deontologists is a function of selective processing. While standards of judgment have been addressed in the literature to measure practices of marketers, our research is the first that speaks to the impact that standards of judgment can have on consumer decision-making.     

Industrialization and Values Evolution: The Case of Hong Kong and Guangzhou, China

This field study evaluated the convergence, divergence, crossvergence, and multi-crossvergence perspectives of value system evolution in industrializing regions. Value differences were identified among graduating business university students in the People's Republic of China, Hong Kong, and the United States. Specific value dimensions in this study reflected the primary influence of either industrialization or regional culture. Thus, our overall results suggest that both industrialization and culture influence the combination of values held in Hong Kong. This finding could be interpreted as supporting the crossvergence perspective of value system evolution. A more precise interpretation, however, is that some value dimensions converge with increasing industrialization, while others remain divergent.     

The CAR Method for Using Preference Strength in Multi-criteria Decision Making

Multi-criteria decision aid (MCDA) methods have been around for quite some time. However, the elicitation of preference information in MCDA processes, and in particular the lack of practical means supporting it, is still a significant problem in real-life applications of MCDA. There is obviously a need for methods that neither require formal decision analysis knowledge, nor are too cognitively demanding by forcing people to express unrealistic precision or to state more than they are able to. We suggest a method, the CAR method, which is more accessible than our earlier approaches in the field while trying to balance between the need for simplicity and the requirement of accuracy. CAR takes primarily ordinal knowledge into account, but, still recognizing that there is sometimes a quite substantial information loss involved in ordinality, we have conservatively extended a pure ordinal scale approach with the possibility to supply more information. Thus, the main idea here is not to suggest a method or tool with a very large or complex expressibility, but rather to investigate one that should be sufficient in most situations, and in particular better, at least in some respects, than some hitherto popular ones from the SMART family as well as AHP, which we demonstrate in a set of simulation studies as well as a large end-user study.     

Gender differences in the impact of banking services: evidence from Mexico

This paper examines the effects of providing financial services to low-income individuals on entrepreneurial activity, employment, and the income levels of men and women. We exploit cross-time and cross-municipality variation in the opening of Banco Azteca in Mexico to measure these effects with a difference-in-difference strategy. This bank opened over 800 branches simultaneously in 2002, focusing on low-income clients. Our results show that this led to an increase in the number of informal business owners among men and to an increase in wage-earning opportunities for women. Average income levels also increased, with this increase being twofold higher for women than for men.     

The determinants of variations in exit rates

A conceptual model of the determinants of exit across spatial areas is presented and empirically tested. The relative merits of two different methods of calculating exit rates are discussed, and results compared. In the empirical estimation, entry is found to be the dominant determinant of exit. However, other factors also have a systematic effect: among these are local income, the rate of change of unemployment, relevant managerial skills, and population density. Making allowance for variations in industrial structure across areas has some effect on the results, but does not eliminate the effect of variables other than entry.     

Corporate governance, investor protection, and performance in emerging markets

We use recent data on firm-level corporate governance (CG) rankings across 14 emerging markets and find that there is wide variation in firm-level governance in our sample and that the average firm-level governance is lower in countries with weaker legal systems. We explore the determinants of firm-level governance and find that governance is correlated with the extent of the asymmetric information and contracting imperfections that firms face. We also find that better corporate governance is highly correlated with better operating performance and market valuation. Finally, we provide evidence that firm-level corporate governance provisions matter more in countries with weak legal environments.     

Loyalty Runs Deeper than Thread Count: An Exploratory Study of Gay Guest Preferences and Hotelier Perceptions

Alongside many global businesses, hotels have recently shared in the movement to serve the gay market. If the perception of being gay-friendly is not the same for hoteliers and their gay guests, a marketing discrepancy may exist and loyalty of the gay segment could be at risk. To address this issue, a sample of 188 gay guests and 48 hoteliers was explored. Differences tests were conducted to evaluate the hotel attribute importance ratings of gay guests versus hoteliers when considering that segment. After conducting a factor analysis, a regression determined the impact of each factor on gay guest loyalty, with the social environment component having the greatest impact. Most importantly, hotels should support the gay community beyond simply offering a room, an intangible yet important display of social responsibility. This study augments previous hospitality research on the gay guest segment and provides avenues for future qualitative and quantitative studies.     

Sustainability as Adaptability

Most corporations now view sustainability as a key requirement for competitive advantage, but few claim to have achieved it. One of the key obstacles separating intention from execution is that the sustainability frameworks employed by companies tend to be insufficiently clear, precise, or comprehensive to guide decision making. One of the most pressing challenges for corporate leaders today is, of course, to sustain the economic viability of the core businesses. But given the implicit “beyond business” focus of most sustainability efforts, corporate executives would be better served by a more integrated, holistic framework—one that enables them to make tradeoffs among the economic, social, and ecological aspects of business. This article introduces such a framework—one that redefines sustainability as the ability of companies to adapt to change in three different spheres of operation—ecological, social, and economic—with a near‐term as well as a longer‐term planning horizon. Without such adaptation, business models become obsolete for reasons that can range from economic failure, to competitive inferiority, to social or ecological limits. This ability to adapt can be measured and valued by using the BCG Adaptive Advantage Index, a composite measure of corporate performance during market downturns. The BCG analysis also shows that although the most adaptive companies tend to report lower profits and have lower values during periods of relative stability, such companies perform consistently better over full cycles. Creating social and ecological value alone doesn't automatically confer economic rewards, but—with the right business model and capabilities—it can. The authors explore some of the business model archetypes that successfully achieve this “co‐optimization.”     

Examining the Covert Nature of Product Placement: Implications for Public Policy

As consumers become better educated and more skeptical of traditional advertising, alternate forms of marketing communication have emerged that aim to influence audiences unobtrusively. One such example is product placement. Product placement has attracted ongoing debate as to whether it is covert, unethical, and influences consumption. The current article examines the nature and practice of product placement in this light. This taxonomy of product placement attributes is based on current marketing practice and examines whether this is, indeed, a covert marketing strategy. Further, it presents a conceptualization of the influence of product placement on consumer welfare. We highlight that the many forms of product placement necessitate independent evaluation to determine ethical and regulatory standards. Operational solutions for developing public policy are offered.